The Bad Bank

Sounds like the title of Lemony Snicket book, doesn't it?

Toxic Assets: Obama Plan for Bad Bank Assets Could Come This Week - Financials * US * News * Story - CNBC.com: "Several competing funds will be established with capital from both public and private sources. The hope is to have these funds bid on the assets weighing down the balance sheets of the nation's banks and create a market price through the competition.

The administration plans to begin the program, to be overseen by the Treasury, the Federal Deposit Insurance Corporation and the Federal Reserve, with purchases of up to $500 billion in assets. It could be expanded to $1 trillion.

The bidders will be offered low-cost government financing to buy the assets and some form of insurance to protect them against downside risk. Taxpayers, in turn, will also have a way of profiting on the upside if the assets appreciate."

Well, another trillion committed to bailing out the nutjobs. And check it out! You can get insurance in case your investment tanks! I guess those guys at AIG had it right all along, except they could not print enough money to cover their asses - a problem Tim Geithner apparently does not have.
______________________________________
Read Nano-Plasm - you know you want to.

© 2005-2009 Stephen Clarke-Willson, Ph.D. - All Rights Reserved.